2012 dollars vs. 1980 dollars- Model A's

The problem is my income hasn't risen like the inflation has, so my buying power is way down today compared to even 20 years ago. I'm just glad I bought my A's and parts when I did, even though I got a relatively late start in the hobby. I should have been buying in the 60's, or even the 70's.
 
Inflation and falling purchasing power certainly have roles in the going price these days, and there is a lot more seller competition in the online marketplace as well. Sellers in the 80's were a bit more localized than today. I'm guessing there are fewer buyers today too; a quick stat on how many Americans can drive a stick now vs. then may be an indicator.
 
Tom Wesenberg said:
The problem is my income hasn't risen like the inflation has, so my buying power is way down today compared to even 20 years ago. I'm just glad I bought my A's and parts when I did, even though I got a relatively late start in the hobby. I should have been buying in the 60's, or even the 70's.
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That means when you sell me your phaeton and 54 Chevy i will get a great deal...Thank Tom that helps
mark
 
Years ago [like 9] when i started doing parts for my 'A' and the shop doing the body at the time was PACKED with cars to be restored[he had cars in trailers outside in the parking lot]. I had asked Chuck what was going on other then he did super work. He told me back then that people were having their cars done because of the inflation cost. They could afford it back then [ $30,000 + for a restoration ] but like Jeff said look at the cost now... The SMART money people figured it out back then. I want the car done now then much later because of the inflation. [Just look at the price of paint.] and a engine rebuilding.
 
Antique automobiles are a luxury, and no matter how much they mean to us, they are only purchased when we can afford them; that is, when we have the spendable cash on hand. Being a luxury, when times get tough, the toys must go, for whatever price possible, and ones investment is rarely gained back.

You may be under the impression you have made a great investment, but use the car like the modern cars you have and take your licks when it comes time to sell. If you bought a car for $15,000 a few years back and can get only $11,000 for it now, consider it a push, because you have had at least $4,000 worth of enjoyment.
 
I went to work in 1977 as a chemical engineer. When I retired Jan2010 I made 6.6x my starting salary. Some of that is due to being a senior engineer but at least 5x is due to inflation. I think your 2.7x inflation factor is a little low. Back then the minimum wage was $1.60 an hour and now $7.25 a factor of 4.5x.

At 5x that $17k car is now $85k.

The 1970s was the hay day of Model A restoring. Even JC Whitney had hundreds of parts available, none now. The really old guys that grew up with Model As are in their 80s or 90s or dead. IMHO there is a lot less demand now. Dear old dad is 91 and can still solve antique car problems that stump me. He grew up more on Chevys and Oldsmobiles as their engines were far more advanced than Fords. Chevy had overhead valves in 1926, Ford in 1954.
 
This is a Model A Fourm, so you are only looking at Model A's, the real money was made investing in other collector cars that really skyrocketed in value. I've only bought cars I liked over the past 50 years, I never want to look at a car I don't like and can't sell.
 
This would be true if we were comparing apples to apples here. Last time I checked, the Consumer Price Index (CPI) didn't include car restoration costs.

So, assuming the owner of this car maintained things in perfect order, but drove the car a few hundred miles each year, he came out ahead. If the car were worth $17,000 in 1980, and here accumulated 20,000 miles since then and were still worth $17,000 today, it sounds like he/she broke even on the car and received $10,000 worth of enjoyment from the car. Factor in the Federal mileage rate for depreciation, but implied in an appreciating factor here, you'd have the spending power of $17,000 (1980 dollars) today totaling nearly $30,000 in today's dollars assuming your inflation factor is correct. Not a bad deal to me! Find a duplicate scenario in any car, new or antique!

This of course assumes the CPI factors car restorations into their calculations...
 
Jeff/Illinois .....................
I was around in 1980. It seems $17,000.00 for a '29 Roadster was a very premium price. He probably paid a bit more than it was worth, back in 1980.
MIKE :)
 
You can go crazy having fun with inflation adjusted dollars. This one on gasoline prices is one of my favorites....
 

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The model A does not generally command the price it used to, adjusted for inflation. My father sold his restored 31 deluze roadster when he knew he was dieing in 1981 for 10K. It is hard to get 30 or 40 K for one now, and it cost that much or more to buy and restore one. I suspect part of the reason is that the people who grew up with the model A and love it for that reason are dieing at an alarming rate. Just look at how many barn fresh cars are up for sale, that were probably squirreled away after WW2 with the plans to restore, but it never happened, and now that the old guy is dead, the family puts the car up for sale. Most of the younger crowd wants a hot rod, or street rod, or rat rod, or some modern version of the model A. Many of us here are satisfied with what came out of the factory back then, but we are becoming the minority. We all lament the lack of interest in antique cars by the youth, but it brings to mind that perhaps our grand fathers or great grandfathers were lamenting that the younger generation had no interest in a good horse and carriage. Times change, the value of our money has changed, we are all a day older.
 
2manycars said:
The model A does not generally command the price it used to, adjusted for inflation. My father sold his restored 31 deluze roadster when he knew he was dieing in 1981 for 10K. It is hard to get 30 or 40 K for one now, and it cost that much or more to buy and restore one. I suspect part of the reason is that the people who grew up with the model A and love it for that reason are dieing at an alarming rate. Just look at how many barn fresh cars are up for sale, that were probably squirreled away after WW2 with the plans to restore, but it never happened, and now that the old guy is dead, the family puts the car up for sale. Most of the younger crowd wants a hot rod, or street rod, or rat rod, or some modern version of the model A. Many of us here are satisfied with what came out of the factory back then, but we are becoming the minority. We all lament the lack of interest in antique cars by the youth, but it brings to mind that perhaps our grand fathers or great grandfathers were lamenting that the younger generation had no interest in a good horse and carriage. Times change, the value of our money has changed, we are all a day older.
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2manycars ......................
It all boils down to what's NOSTALGIC to a person.
The kids, today, had no experience with Model "A"s. They might have seen hot rods, on the street, and wished that they could have one. So, their interest goes towards the hot rod.
MIKE :)
 
Mike your right too. Nostalgic ! I bought my first Model "A" 31 Tudor in 1972 for $1,550.00...I had no clue what to do, but i liked the car and bought it. I was into racing 1/4 mile back then and i still have many hot rods books today . The car was heading to be A Hot Rod by me if i did not meet Charlie that was into keeping a old car stock.He took me into the restored world. For most Hot /street rods its turn key. For old original cars its work....
 
Mike and 2manycars hit the nail on the head with their answers. What is popular today to someone is what was popular when they were in their teens. This is what they find "cool", thus the popularity of the cars of the fifties and sixties now, rather than the earlier ones. Anything older than a Model A is rarely taken out, other than for a parade and the brass cars are now all museum pieces.

People want what they can relate to... This is true in just about all fields of collecting, not just cars.

Richard
 
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I agree that for many people, "they want something they can relate to", BUT, I have always liked old things (radio's, cars,etc.) and that was true when I was a teenager.

I guess that i was born 50 years too late !

Marc
 
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